Matrixport: Traders are currently more focused on pursuing upside potential rather than hedging downside risks.

Odaily Planet Daily reports that Matrixport released a chart today indicating that Bitcoin's option skew (the difference between the implied volatility of put options and call options) has dropped to nearly -10%. This means that the implied volatility of call options is 10% higher than that of put options, suggesting that traders are currently more focused on chasing upside potential rather than hedging downside risk.

Based on our experience, when the option skew reaches similar levels, it usually signals that market sentiment is extremely optimistic. Such extreme sentiment often acts as a contrarian indicator, potentially signaling a short-term market pause or a pullback. As mentioned in our report yesterday, although we have maintained a bullish outlook since mid-April, the current phase may be a suitable time to gradually control risk exposure. The essence of trading lies in balancing risk and reward. In a market environment where sentiment is generally bullish, we believe that remaining patient and waiting for more attractive entry points may be a more prudent choice.